Selling a Business in Munich
Munich is Germany's wealthiest city and its most dynamic mid-market M&A environment. The combination of a world-class Mittelstand, a mature VC and PE ecosystem, and a deep pool of strategic buyers — domestic and international — consistently produces the strongest transaction multiples in Germany.
The Munich mid-market M&A landscape in 2026
Munich's mid-market M&A market is shaped by three forces that are unique to Bavaria. First, the city's extraordinary industrial heritage — BMW, MAN, Siemens, and the dense ecosystem of engineering and technology businesses built around them — generates a consistent supply of high-quality acquisition targets in automotive, industrial, and deep tech. Second, a mature life sciences and medtech cluster centred on the LMU hospital system and the Helmholtz research network produces some of Germany's most sought-after healthcare M&A targets. Third, the Bavarian Mittelstand — characterised by long-established, family-owned businesses with strong market positions and conservative financial management — is reaching a generational inflection point as founders approach retirement age.
The combination of these factors produces a buyer landscape that is both broad and competitive. Strategic acquirers — both domestic and international — are drawn to Munich's technology and life sciences assets. PE funds, including Munich-based groups such as Brockhaus Capital Management and international funds with Munich presence, are active investors in Mittelstand businesses. Family offices, which manage significant capital in the Munich region, are also a consistent source of buyer demand at the lower end of the mid-market.
Munich businesses command the highest transaction multiples in Germany, driven by earnings quality, market position, and the sheer depth of buyer competition. For sellers, this is a structural advantage — but realising it requires a properly competitive process that creates genuine tension between multiple credible buyers.
Key sectors driving Munich M&A
Munich's economy spans automotive, life sciences, insurance, technology, and premium consumer — each with its own buyer landscape and M&A dynamics. Here is what buyer appetite looks like across each.
Automotive & Mobility Technology
Munich is the global headquarters of BMW and MAN, and the regional home of Siemens Mobility and a vast ecosystem of Tier 1 and Tier 2 automotive suppliers, engineering consultancies, and software providers serving the automotive OEMs. M&A in this sector is driven by OEM consolidation of supply chains, PE interest in automotive software and electrification technology, and international acquirers seeking access to German engineering capability. Businesses providing ADAS software, battery technology services, or connected vehicle platforms are commanding the strongest multiples.
Life Sciences & Medtech
Munich hosts one of Europe's strongest life sciences clusters, anchored by the Ludwig Maximilian University hospital system, the Helmholtz Munich research centre, and a dense network of biotech startups, medtech manufacturers, and pharmaceutical companies. M&A activity is driven by both large pharma consolidation and PE interest in medtech and diagnostics businesses. Munich medtech businesses with CE-marked products and established hospital relationships are highly sought after by both European and US strategic acquirers. Regulatory pathways under MDR 2017/745 are a standard diligence consideration.
Insurance & Financial Services
Munich is the global headquarters of Allianz and Munich Re, two of the world's largest insurance groups, and home to a substantial ecosystem of insurtech, reinsurance, and financial services businesses built around this institutional core. M&A activity ranges from large insurtech acquisitions by the major carriers to PE-backed roll-ups in insurance distribution and claims management. Businesses with proprietary data, underwriting technology, or distribution channels in commercial lines are particularly sought after.
Technology & Deep Tech
Munich's technology sector combines two distinct pools: a mature enterprise software community serving the automotive and industrial sectors, and a fast-growing VC-backed startup ecosystem supported by Munich Venture Partners and a cluster of international venture funds. Industrial IoT, robotics, AI, and cybersecurity businesses attract both strategic and financial acquirers. The Technical University of Munich (TUM) is a consistent source of deep tech spinouts that attract early M&A interest. US strategic acquirers are among the most active buyers of Munich tech businesses.
Media, Luxury & Consumer
Munich is Bavaria's media capital — home to ProSiebenSat.1 and a wide ecosystem of content production, digital media, and advertising businesses. The city's luxury goods and premium consumer market also generates consistent M&A activity, particularly in premium hospitality, fashion retail, and branded food and beverage. Family-owned consumer businesses reaching a generational inflection point are one of the more distinctive sources of mid-market deal flow in the Munich region.
Professional Services & Consulting
Munich's status as Germany's wealthiest city by GDP per capita generates strong demand for high-end professional services — management consulting, engineering consulting, legal, and financial advisory — and consequently consistent M&A activity in these sectors. International professional services firms seeking Munich presence are active buyers. PE-backed roll-up platforms consolidating engineering or management consulting businesses are also a regular source of demand, particularly for businesses with established automotive or industrial client relationships.
German and Bavarian considerations when selling your business
Selling a Munich business involves legal, structural, and cultural considerations that are specific to Germany — and in some respects to Bavaria. These are not obstacles, but they need to be understood and planned for before you start a process.
Notarisation of Share Transfers
Under German law (GmbHG §15), any transfer of GmbH shares must be notarised by a German Notar. This is a mandatory procedural requirement with no equivalent in most other jurisdictions. The Notar reads the entire share purchase agreement aloud at the signing ceremony — a process that can take several hours for a mid-market transaction. Both buyer and seller must be present or represented by proxy. This requirement needs to be planned for in advance, as Notar availability and the lead time to prepare the notarisation documents can affect transaction timelines. Palmstone coordinates this process for every German transaction we advise on.
Bavarian Family Business Succession
A significant proportion of Munich and Bavarian mid-market M&A is driven by family business succession — owners in their 60s and 70s who have not identified a next-generation successor within the family and are exploring external sale as the preferred exit route. Buyers understand this dynamic and generally approach Bavarian family business transactions with sensitivity to the seller's concern for employee continuity and business preservation. For sellers, understanding this buyer psychology — and selecting buyers who share those values — is often as important as maximising headline price.
Premium Multiples in the Munich Market
Munich businesses consistently command higher multiples than equivalent businesses in other German cities. This premium reflects the city's GDP per capita (highest in Germany), the quality of its Mittelstand, and the depth of the buyer pool — both German strategics and international acquirers specifically seek Munich-based targets. For sellers, this is a genuine competitive advantage, but it also means that Munich buyers are sophisticated and will rigorously scrutinise earnings quality, growth trajectory, and management depth before committing to a premium valuation.
Works Council and Employee Consultation
Bavarian businesses with more than five employees can establish a Betriebsrat, and many mid-market Munich businesses have active works councils. Under the BetrVG, the works council must be informed and consulted before any significant operational change — including a business transfer — though it does not hold a veto right over the transaction itself. International buyers unfamiliar with German co-determination law sometimes underestimate the importance of managing this process carefully. A poorly handled works council consultation can create significant post-close integration difficulties.
What Munich buyers are looking for right now
Munich's buyer market in 2026 is active and competitive. PE funds are targeting quality Mittelstand businesses with defensible earnings; strategic acquirers — particularly in automotive, life sciences, and technology — are executing buy-and-build strategies. The businesses achieving the best outcomes in Munich share a consistent set of characteristics.
Engineering and technology differentiation
Munich buyers — particularly in automotive and industrial sectors — are paying premiums for businesses with genuine IP, proprietary processes, or technological differentiation. Market position built on engineering excellence is more defensible than position built on price or relationships alone.
Strong recurring revenue and long-term customer relationships
Bavarian Mittelstand businesses are often characterised by decade-long customer relationships. Buyers recognise this as a structural moat. Businesses that can demonstrate low customer churn, multi-year contracts, or embedded positions in customer supply chains command the strongest multiples.
Management depth beyond the founding generation
In family business succession transactions — which are a large proportion of Munich mid-market deal flow — buyers need to see a credible management team capable of running the business post-close. Investing in the Geschäftsführer layer in the 2-3 years before a sale is one of the highest-return pre-exit investments a Bavarian founder can make.
International revenue or scalability
Munich businesses that have already demonstrated international scalability — particularly into the US or Asia — are rewarded with a meaningful multiple premium. For businesses still primarily domestic, international buyers will want to see a credible international growth thesis as part of the equity story.
Also in Germany
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Considering selling your Munich business?
We offer an initial confidential consultation at no charge and without obligation. We will give you an honest assessment of what your business is likely worth in the current market, what a sale process in Munich would look like, and whether the timing is right. If it is not the right time, we will tell you that too.